In a letter to investors, BMW CEO Oliver Zipse provided a “conservative” estimate that his company could face over $1 billion in revenue losses due to Trump’s sweeping tariffs.
In 2024, the company reported a net profit loss of $8.32 billion.
BMW’s earnings margin for automobiles is projected to be 5-7% in 2025. Zipse cited EU duties on its China-made electric vehicles and newly imposed U.S. tariffs as reasons for the anticipated revenue decline.
At the same time, the company’s CEO also revealed that it is pursuing legal action against the EU. “As a global player, your Company is dedicated to free trade and ensuring a level playing field across regions. Tariffs, on the other hand, hinder free trade, slow down innovation and make products more expensive … That is why we are standing firm on the issue of additional EU tariffs on imports of electric vehicles from China, which came into force in October 2024 and also apply to our models produced there. Together with BMW Brilliance and our joint operation Spotlight, we have therefore filed a lawsuit against the E.U.”
Zipse stated, “We will vigorously oppose negative developments and trade barriers. Since the same applies to duties on vehicles imported from the US into the European Union, we have proposed that the EU send a positive signal by establishing a uniform tariff rate of 2.5% on both sides. Our proposal for a level playing field has garnered a lot of attention.”
Norbert Reithofer, Chairman of the Supervisory Board of BMW said, “In 2025, your Company will continue to adapt dynamically to changes, with its sights firmly set on long-term success. Our innovative and attractive range of products, coupled with a well-balanced distribution of value creation, will lay the foundations for this success.”
This year, BMW is celebrating “50 years of BMW North America”. BMW’s shares fell over 2% following the earnings statement.
By CEO NA Editorial Staff
